The amendments require an entity to use updated actuarial assumptions to determine current service cost and net interest for the remainder of the annual reporting period after the plan amendment, curtailment or settlement when the entity remeasures its net defined benefit liability (asset). Using updated assumptions provide more useful information to users of financial statements and enhance the understandability of financial statements. Before the amendments, MFRS 119 did not require an entity to use updated assumptions to determine current service cost and net interest for the period when changes to a defined benefit pension plan occur.

The amendments are effective for annual periods beginning on or after 1 January 2019. Earlier application is permitted.